Car Park & Parking Structure Insurance
A car park is a building whose contents are other people's vehicles, each carrying fuel or a battery. When one catches fire in a multi-storey structure, closely parked neighbouring cars can become involved, and the heat can damage the concrete frame as well as the vehicles. The 2017 fire at the multi-storey car park beside the Echo Arena in Liverpool, which began in a diesel vehicle, is often cited as an example of how far a car park fire can spread.
The structure needs attention of its own. Many multi-storey and underground car parks were built decades ago, and de-icing salt, water and carbonation slowly attack reinforced concrete. Insurers ask about structural inspections, and the condition of the deck and ramps affects both the property and the liability terms.
Electric vehicles and charging points are a newer question. Charging equipment adds electrical installations to the deck, and insurers want to know how chargers are installed, protected and maintained, and what the fire service can reach if a battery fire occurs, whatever the relative frequency of fires in different vehicle types turns out to be.
We can advise owners and operators of multi-storey, underground, surface and private car parks on insuring the structure, the equipment, the income and the liability that comes with members of the public driving and walking through the site.
Common claims and risk exposures
The exposures that produce claims in this trade, rather than a generic list.
Vehicle fires spreading across a deck
A fire in one car can involve its neighbours where bays are close together and the deck is low. Older structures may have no sprinklers, and fire service access to upper or underground levels can be limited by height barriers and ramps.
Concrete deterioration
Chloride from road salt and water penetration can corrode reinforcement, and some structures of a certain age may contain materials such as RAAC that need specialist assessment. Spalling concrete is a hazard to people and cars below, and a structure judged unsafe may have to close.
Pedestrians on ramps, stairs and decks
Drivers become pedestrians the moment they leave the car. Ice on exposed top decks, poor lighting, uneven surfaces, stairwells and unmarked kerbs produce slip and trip claims, and the operator is usually the defendant.
Damage to customers' vehicles
Falling concrete, a barrier arm lowering onto a car, a pothole, flooding in a basement level or a fire can all damage vehicles parked by customers. Whether the operator is liable depends on the cause and the terms of parking, and notices on the wall do not always settle it.
Barriers, machines and vandalism
Barriers, ANPR cameras, pay stations and charging units are exposed to vehicle impact, theft of cash and coins, vandalism and weather. Out of hours, an unmanned site can attract antisocial behaviour, arson and damage to equipment.
The cover we arrange
We arrange insurance around the property, its use, construction, occupancy and ownership structure. The cover available will depend on the individual risk and the terms offered by insurers.
Buildings and structure
The deck, ramps, stair cores, lifts, lighting and drainage on a reinstatement basis. Demolition and debris removal can be a significant cost after a serious fire in a concrete structure, and limits should reflect it.
- Decks, ramps and stair cores
- Lifts, lighting and drainage
- Demolition and debris removal
- Compliance with current building regulations
Equipment
Barriers, ANPR and CCTV systems, pay stations, signage and EV charging points owned by the operator or the property owner. Some of this equipment may be leased, in which case the agreement sets who insures it.
- Barriers and access control
- ANPR cameras and CCTV
- Pay stations and cash in machines
- EV chargers where owner installed
Property owners and public liability
Injury to drivers, passengers and pedestrians using the site, and damage to their property where the operator is legally liable. Liability for vehicles in the operator's care, such as a valet or pay on exit with keys held, may need specific cover.
- Slips and trips on decks and stairs
- Damage to customers' vehicles where liable
- Vehicles in care, custody or control
- Limits typically £5m or £10m
Loss of parking income
Income lost while the car park or part of it is closed after insured damage. Closure may follow a fire, a structural concern after damage, or denial of access because of an incident nearby, depending on the extensions included.
- Parking revenue during closure
- Season ticket and contract parking income
- Denial of access extension
- Indemnity period reflecting structural repair
Employers' liability
Attendants, patrol staff and cleaners mean an employer's legal duty to insure. Employers' liability can be arranged where required, subject to the policy terms, and lone working and night shifts are relevant to the underwriting.
- Attendants and patrol staff
- Cleaning and maintenance staff
- Lone and night working
- Subject to policy terms
What an underwriter will ask
Having these to hand shortens the process considerably, and usually improves the terms.
- Type of car park: multi-storey, underground, surface or a structure beneath another building
- Year of construction, structural inspection history and any known concrete defects
- Number of spaces, opening hours and whether the site is staffed
- Fire protection, sprinklers, smoke ventilation and fire service access
- Number and location of EV charging points and who installed and maintains them
- Lighting, CCTV, barriers and security patrols
- Winter maintenance: gritting of top decks and ramps, and records kept
- Parking income, season ticket arrangements and the indemnity period sought
What affects the cost of your insurance?
The main factors insurers consider when assessing the premium.
Structure type and age
Open surface car parks are simpler to insure than enclosed or underground structures. Older multi-storeys with limited inspection records attract tighter terms.
Fire protection and EV charging
Sprinklers, ventilation and good fire service access improve terms. The number, location and installation standard of chargers is now part of the assessment.
Footfall and staffing
High turnover sites near shopping centres, stations and hospitals carry more pedestrian claims than a small private car park, and staffing and inspection routines influence the rate.
Income and indemnity period
Structural repair after a serious fire can take a long time, so a longer indemnity period is often needed, and the premium for loss of income reflects it.
Conditions and exclusions to consider
Terms vary between insurers, so treat these as the questions to ask rather than a description of any one policy.
Customers' vehicles where no liability exists
The operator's liability policy pays only where the operator is legally liable. A car damaged by another driver, or by a fire that began in someone else's vehicle without fault on the operator's part, is normally a claim for the vehicle owner's motor insurer.
Gradual concrete deterioration
Corrosion of reinforcement, carbonation and slow structural decay are maintenance matters. Insurers will not pay to repair a structure that has deteriorated over time, and closure for that reason is not an insured interruption.
Charging equipment not properly installed
Where chargers have been installed without appropriate certification or maintenance, insurers may restrict cover for losses arising from them. Keep installation and inspection records.
Cash in unattended machines
Theft of cash from pay stations is often limited, and may only be covered when machines are emptied regularly and meet security conditions.
Common questions
If a customer's car catches fire, who pays for the others?
Usually each vehicle owner's motor insurer, unless the fire was caused by the operator's negligence. The car park's own policy covers damage to the structure and the operator's equipment and income, and liability where the operator is at fault.
Do notices saying vehicles are parked at owner's risk protect us?
They may help, but they are not a complete answer. Terms that try to exclude liability for negligence can be limited by consumer law, particularly for injury. Liability insurance remains important.
Does installing EV chargers affect our insurance?
It may. Tell the insurer before installation. They will want to know where chargers are sited, who installed them and how they are maintained, and some may set conditions around location, isolation and inspection.
Our structural survey found defects. Do we need to tell the insurer?
Yes. Known defects are material information. Disclosing them along with the repair plan is better than having a claim examined later against a report the insurer never saw.
Is loss of parking income covered if the council closes the road?
Only if the policy includes a denial of access or prevention of access extension, which usually has its own limit and conditions. Ordinary business interruption cover needs damage at the insured premises.
How do I get a quote from True Risk Solutions?
Call 01304 262880 and speak to a broker, or email info@truerisksolutions.co.uk with what you do, what you need cover for and a phone number with the best time to call, and a broker will call you back. We need a phone number to quote, because the cover and the price depend on questions that are quicker to answer on a call than by email.
Speak to a specialist who understands your industry
Tell us about your business and the work you undertake, and we will come back to you with cover options built around it. Call 01304 262880, or email us with a phone number and the best time to call and a broker will ring you back.